Barry Sternlicht's third SPAC Jaws Mustang Acquisition prices upsized $900 million IPO

Jaws Mustang Acquisition, the third blank check company led by Starwood Capital founder Barry Sternlicht, raised $900 million by offering 90 million units at $10. The company offered 15 million more units than anticipated. Each unit consists of one share of common stock and one-fourth of a warrant, exercisable at $11.50.

The company is led by Chairman Barry Sternlicht, the founder and CEO of Starwood Capital and Starwood Property Trust (NYSE: STWD), and CEO and Director Andrew Klaber, the founder and CEO of Bedford Ridge Capital and a former Partner on the investment team at Paulson & Company. The company plans to target business in North America and/or Europe, focusing on those that have a clear path to organic and inorganic growth, formidable barriers to entry, exceptional management, and strong underlying demand drivers. While it has not selected a target industry, the company does not intend to pursue those that are competitive with Starwood Capital, which includes real estate, lodging, oil and gas, and energy infrastructure.

Sternlicht's previous SPACs include Jaws Spitfire Acquisition (SPFR.U; +20% from $10 offer price), which went public in December 2020, and Jaws Acquisition (JWS; +41%), which went public in May 2020 and has a pending merger agreement with value-based care delivery platform for seniors Cano Health.

Jaws Mustang Acquisition plans to list on the NYSE under the symbol JWSM.U. Credit Suisse, BofA Securities and Goldman Sachs acted as lead managers on the deal.